TikTok’s future in the US is at the center of a complex geopolitical battle.
Driving the news
- The app, which boasts 170 million US users, faces a potential ban unless its Chinese parent company, ByteDance, sells its US operations.
- President Trump has delayed the ban by 75 days to explore alternatives, including a possible 50% joint ownership with US investors.
- Meanwhile, Beijing has expressed strong opposition to what it sees as coercion, framing the matter as a test of sovereignty and fairness.
Why it matters
- TikTok is more than just a popular platform for short videos. It has become a critical part of the digital ecosystem for entertainment, marketing, and even political discourse. Its widespread use among Americans makes it an important player in the US economy, with thousands relying on it for income.
- However, national security concerns have put the app in the crosshairs of policymakers, who fear its data could be accessed by the Chinese government.
- Resolving TikTok’s future could set a precedent for how the US handles foreign-owned technology companies operating within its borders. At the same time, the decision could redefine the boundaries of US-China relations at a time of heightened tension.
The big picture
The US has labeled TikTok a security threat, citing the potential for user data to be accessed by ByteDance and, by extension, the Chinese government. This concern is rooted in China’s data privacy laws, which could compel companies to share information with state agencies. While TikTok denies these claims and points out that its US data is stored on American servers, bipartisan support in Congress for action against the app underscores the severity of these concerns.
The law requiring TikTok to sell its US operations or face a ban was upheld by the Supreme Court. However, Trump’s decision to delay enforcement reflects a willingness to negotiate. The proposed solution of a 50-50 joint venture between ByteDance and US investors would allow the app to continue operating while potentially addressing security concerns.
In Beijing, however, the reaction has been far less accommodating. As per a CNN report, Chinese officials and state media have criticized the US approach as “robbery,” with millions on platforms like Weibo calling the demand for a sale unfair. Some compared it to hypothetical scenarios where China might demand a 50% stake in US companies like Tesla or Apple.
What they’re saying
- President Trump: “We can make a deal where the United States owns half of TikTok, and they’ll have a great partner,” Trump said, emphasizing the importance of protecting national security while keeping the platform alive.
- China’s foreign ministry: Beijing has called for fairness, urging the US to “provide an open, fair, just and non-discriminatory business environment.”
- According to a Reuters report, the back-and-forth has sparked mixed reactions from users, with some considering abandoning TikTok after witnessing Trump’s heavy involvement in negotiations that could lead to the platform being sold to one of his allies in the tech industry.
- “I do not want to continue being a pawn in this hellscape. I am not saying it will make a difference to TikTok but it will make a difference to me. I will not be back on TikTok,” said Nicole Norman, a TikTok user, on Meta’s Threads app.
- “Really hoping TikTok comes back to the app store ASAP, not wanting to do any of that VPN stuff to get it back,” said Lauren Nader, a TikTok user, on Threads.
- What they’re saying in China: The backlash in China has been fierce.
- Criticism of the US approach is widespread, with comments such as, “This is outright robbery, and changing 100% to 50% doesn’t change the essence.”
- On Weibo, millions have criticized the US for what they perceive as bullying tactics. Comments like “This is no different from piracy” and “China should demand 50% of Nvidia in return” reflect widespread anger. State media has also weighed in, with editorials in outlets like the Global Times accusing the US of politicizing economic issues.
I have the right to make a deal. So what I’m thinking about saying to somebody is buy it and give half to the United States of America, half, and we’ll give you the permit, and they’ll have a great partner
US President Donald Trump
Between the lines
The debate over TikTok’s fate goes beyond national security or business interests. It is a proxy for the larger struggle between the US and China over technology dominance and data sovereignty. For Beijing, ByteDance represents a symbol of China’s ability to produce globally competitive tech companies. For Washington, TikTok epitomizes the risks of relying on foreign-owned platforms in a world where data is a valuable resource.
Beijing’s concerns are not only economic but also strategic. Allowing ByteDance to sell TikTok under US pressure could set a dangerous precedent, signaling that Chinese companies are vulnerable to coercion. At the same time, Beijing must weigh the economic consequences of losing TikTok’s presence in the US market.
You have an asset that has no value or has a trillion-dollar value. It all depends on whether or not the United States gives the permit.
US President Donald Trump
Zoom in
The most contentious issue in a potential sale is TikTok’s proprietary algorithm, which is widely regarded as the engine behind its success. ByteDance has indicated that this technology is not for sale, and Chinese officials have hinted that any transfer of this intellectual property would require their approval. This adds a layer of complexity to negotiations, as US lawmakers may be unwilling to accept a deal that does not include the algorithm.
Another complicating factor is Trump’s suggestion that tariffs on Chinese goods could be tied to TikTok’s future. The president has floated the idea of imposing up to 100% tariffs if Beijing does not approve a deal. This raises the stakes for both sides and intertwines the TikTok issue with broader trade negotiations.
I have been against a TikTok ban for a long time, because it goes against freedom of speech. That said, the current situation where TikTok is allowed to operate in America, but X is not allowed to operate in China is unbalanced
X-owner Elon Musk
What’s next
- A variety of potential buyers have emerged for TikTok’s US operations. These include:
- Elon Musk: The Tesla CEO has expressed interest, aligning with Trump’s openness to a Musk-led bid.
- As per a Bloomberg report, a group of American investors led by tech entrepreneur Jesse Tinsley, including MrBeast, announced a bid for TikTok earlier Tuesday.
- Billionaire Frank McCourt and
Shark Tank investor Kevin O’Leary also made a $20 billion offer this month. O’Leary noted, “We’re not conflicted in any way and we have the cash,” and said the deal could close in 90 days. McCourt is open to buying TikTok without its content algorithm, easing concerns about Chinese “spyware.” - Amazon and Oracle, both with existing TikTok partnerships, have been mentioned as potential bidders. Oracle restored TikTok’s app after a brief US shutdown, despite potential legal risks.
- Despite these developments, a deal remains far from certain. ByteDance has resisted selling TikTok outright, and the Chinese government has signaled that any transaction must comply with its laws.
TikTok’s future is up to the Chinese Communist Party (CCP), and how China’s leaders respond could offer some important clues for the near-term future of the US-China relationship.
An article in Foreign Policy
The bottom line
The next 75 days will be critical as negotiations unfold. Key questions include:
Will Chinese President Xi Jinping approve a deal? Chinese officials have so far maintained that ByteDance should decide independently, but any sale involving TikTok’s algorithm would require government approval.
How will the US structure a sale? Trump’s proposed 50-50 model could appease some lawmakers, but others may insist on full divestment to address security concerns.
Could tariffs play a role? By tying TikTok’s fate to broader trade issues, Trump has introduced an additional layer of complexity to an already fraught situation.
TikTok’s fate is more than just a business decision. It reflects broader themes of sovereignty, security, and the global balance of power. While Trump’s willingness to negotiate has given ByteDance a temporary reprieve, the ultimate decision may lie with Xi Jinping and CCP. For both the US and China, the stakes are high, and the outcome will have lasting implications for their economic and political relationship.
(With inputs from agencies)
